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Celsius Network to Restructure as Bitcoin Mining Operation

Celsius Network receives court approval to transform into a Bitcoin mining company as part of its bankruptcy exit strategy.
Published on 2023-11-21

Court Approval for Restructuring

Celsius Network has obtained approval from the US Bankruptcy Court in the Southern District of New York to transition into a Bitcoin mining operation. This strategic move is aimed at addressing insolvency issues by repaying account holders whose funds have been frozen.

Creation of Mining NewCo

As part of this court-sanctioned plan, Celsius will establish a new entity called Mining NewCo, dedicated to Bitcoin mining. This marks a potential exit from bankruptcy and a significant shift in business focus. Plans are underway to register shares for a new public entity centered around Bitcoin mining, offering customers an ownership stake.

Shift from Previous Agreements

This pivot replaces a prior agreement with Fahrenheit LLC, which had made a $2 billion bid. Celsius is now seeking further court approval for this transformation, with the goal of initiating creditor distributions by January 2024, contingent on receiving SEC regulatory clearance.

Customer Skepticism and Contingency Plans

Despite the promising restructuring plan, customer skepticism persists regarding the shift to Bitcoin mining. In response, Celsius has developed an alternative liquidation strategy to implement if regulatory hurdles arise. This demonstrates the company's proactive approach to navigating the complex cryptocurrency regulatory landscape and its dedication to finding a sustainable resolution for its creditors and customers.

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